Electro Scientific Industries, Inc.
Second Quarter Fiscal 2019 Results
Reconciliation of GAAP to Non-GAAP Financial Measures
(Unaudited)
| Fiscal quarter ended | Two fiscal quarters ended | ||||||||||||||||||
| (In thousands, except per share data) | Sep 29, 2018 | Jun 30, 2018 | Sep 30, 2017 | Sep 29, 2018 | Sep 30, 2017 | ||||||||||||||
| Gross profit per GAAP | $ | 39,067 | $ | 53,198 | $ | 26,532 | $ | 92,265 | $ | 52,952 | |||||||||
| Purchase accounting | 242 | 243 | 242 | 485 | 493 | ||||||||||||||
| Equity compensation | 122 | 106 | 77 | 228 | 144 | ||||||||||||||
| Charges for other asset and inventory impairment | — | — | 6,083 | — | 13,277 | ||||||||||||||
| Charges from VAT audit | — | (97 | ) | — | (97 | ) | — | ||||||||||||
| Non-GAAP gross profit | $ | 39,431 | $ | 53,450 | $ | 32,934 | $ | 92,881 | $ | 66,866 | |||||||||
| Operating expenses per GAAP | $ | 19,992 | $ | 20,189 | $ | 22,084 | $ | 40,181 | $ | 45,037 | |||||||||
| Purchase accounting | (116 | ) | (114 | ) | (117 | ) | (230 | ) | (336 | ) | |||||||||
| Equity compensation | (1,543 | ) | (1,393 | ) | (1,253 | ) | (2,936 | ) | (2,464 | ) | |||||||||
| Restructuring costs | — | — | (2,162 | ) | — | (3,373 | ) | ||||||||||||
| Non-GAAP operating expenses | $ | 18,333 | $ | 18,682 | $ | 18,552 | $ | 37,015 | $ | 38,864 | |||||||||
| Operating income per GAAP | $ | 19,075 | $ | 33,009 | $ | 4,448 | $ | 52,084 | $ | 7,915 | |||||||||
| Non-GAAP adjustments to gross profit | 364 | 252 | 6,402 | 616 | 13,914 | ||||||||||||||
| Non-GAAP adjustments to operating expenses | 1,659 | 1,507 | 3,532 | 3,166 | 6,173 | ||||||||||||||
| Non-GAAP operating income | $ | 21,098 | $ | 34,768 | $ | 14,382 | $ | 55,866 | $ | 28,002 | |||||||||
| Non-operating income (expense), net per GAAP | $ | 383 | $ | 452 | $ | (229 | ) | $ | 835 | $ | (413 | ) | |||||||
| Adjustment to VAT audit | — | (49 | ) | — | (49 | ) | — | ||||||||||||
| Non-GAAP non-operating income (expense) | $ | 383 | $ | 403 | $ | (229 | ) | $ | 786 | $ | (413 | ) | |||||||
| Non-GAAP income before income taxes | $ | 21,481 | $ | 35,171 | $ | 14,153 | $ | 56,652 | $ | 27,589 | |||||||||
| Net income per GAAP | $ | 16,835 | $ | 31,143 | $ | 4,260 | $ | 47,978 | $ | 7,162 | |||||||||
| Non-GAAP adjustments to gross profit | 364 | 252 | 6,402 | 616 | 13,914 | ||||||||||||||
| Non-GAAP adjustments to operating expenses | 1,659 | 1,507 | 3,532 | 3,166 | 6,173 | ||||||||||||||
| Non-GAAP adjustments to non-operating expense | — | (49 | ) | — | (49 | ) | — | ||||||||||||
| Income tax effect of other non-GAAP adjustments (a) | 2,239 | 1,734 | (483 | ) | 3,973 | (507 | ) | ||||||||||||
| Non-GAAP net income | $ | 21,097 | $ | 34,587 | $ | 13,711 | $ | 55,684 | $ | 26,742 | |||||||||
| Basic Non-GAAP net income per share | $ | 0.61 | $ | 1.00 | $ | 0.40 | $ | 1.61 | $ | 0.79 | |||||||||
| Diluted Non-GAAP net income per share | $ | 0.59 | $ | 0.96 | $ | 0.39 | $ | 1.55 | $ | 0.77 | |||||||||
